ED Investigates Gaming Companies’ GST Evasion Worth Rs. 23,000 Crore

Tax officers are investigating GST evasion of about Rs 23,000 crore by gaming corporations between April 2019 and November 2022, Minister of State for Finance Pankaj Chaudhary mentioned on Monday.

In a written reply to a query within the Lok Sabha, the minister mentioned the Enforcement Directorate has hooked up proceeds of crime of greater than Rs 1,000 crore in a number of circumstances associated to Cyber and Crypto belongings frauds whereby on-line gaming and many others have been used for siphoning the proceeds.

About evasion of Items and Companies Tax (GST), Chaudhary mentioned Central Board of Oblique Taxes and Customs (CBIC) formations have initiated investigations in opposition to some gaming corporations (together with on-line gaming companies) situated in India in addition to overseas.

“The estimated evasion of GST by these corporations works out of Rs 22,936 crore, regarding the interval April 2019 to November 2022,” he mentioned.

The ED can also be investigating a number of circumstances associated to Cyber and Crypto belongings frauds. In these circumstances, as on December 6, 2022, proceeds of crime of greater than Rs 1,000 crore have been hooked up below the provisions of the Prevention of Cash Laundering Act, 2002 (PMLA). Additionally, 10 Prosecution Complaints (PCs), together with 2 supplementary PCs, have been filed earlier than the Particular Courtroom PMLA.

Additional, belongings amounting to Rs 289.28 crore have been seized below part 37A of the Overseas Trade Administration Act, 1999, the minister mentioned.

To a question on whether or not the Earnings Tax Division has issued notices to many gaming corporations for non-payment of tax, Chaudhary mentioned the data isn’t accessible, since no particular identification code for on-line gaming entities is on the market in Earnings Tax Return.

“The disclosure of details about particular taxpayer is prohibited besides as supplied below part 138 of the Earnings Tax Act, 1961,” he added.

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